Nigerian textile industry receives VAT exemption for three years

Image from Matador Network

The local textile industry was boosted after the Nigerian government decided to impose a three-year zero-rate Value-Added Tax on locally produced textile suppliers.

The move is to help reduce their cost build up, make the local textile industry price-competitive and help them compete with the influx of cheap textile products from other parts of the world.

Although the policy is expected to cost the government an estimated revenue of GH￠40.1 million annually, it comes as a huge relief to the industry who have for a long time now been appealing to the government for tax exemptions on their products.

The country used to boast of a textile industry that employed about 30,000 people. However, in recent years, the textile industry has fallen on hard times and now employs just about 5000, a situation which has been largely blamed on the high cost production in the sector and the current tax system which contributes to the cost build up of locally manufactured textiles.

To make the industry competitive again, the government has introduced a Bill to Parliament to zero-rate VAT of local textiles.

Laws & Regulations
• Egypt’s tax-free car import initiative generates $... 03-20
• Resource curse: more Africa countries could benefi... 01-16
• Morocco Announces Cigarette Price Hike for 2024 as... 12-27
• Nigeria wins appeal in landmark ruling against Pro... 11-16
• Togo, Benin slash telecommunication charges 10-24
• Egypt adopts new strategy to increase industry’s c... 10-05

Trade Shows
• African Energy Week (AEW) 2024: Date Set 10-12
• Cityscape Egypt 2023 expo kicks off on Tuesday wit... 09-19
• Cotonou to host first Auto Moto Show on October 12... 06-27
• Ministerial Forum a top feature at Big 5 Construct... 05-17
• THE BUILD&DECOR EXPO 05-06
• SIAM: Moroccan, International Companies Showcase I... 05-03